According to the Unbiased Forward Rate Theory,the Current 90-Day Forward

question 32

Multiple Choice

According to the unbiased forward rate theory,the current 90-day forward rate should fairly accurately predict the

• A)interest rate differential between two countries 90 days from now.
• B)difference in the inflation rate between two countries 90 days from now.
• C)forward rate 90 days from now.
• D)real rate 90 days from now.
• E)spot rate 90 days from now.

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Definitions:

Slow-Wave Sleep

Stages 3 and 4 of deep sleep, where a person is substantially less conscious and is hard to awaken; EEGs reveal large, regular delta waves.

Beta Waves

A type of brain wave pattern associated with active, alert consciousness and cognitive processing.

Video Game

An electronic game that involves interaction with a user interface to generate visual feedback on a screen.

REM Sleep

A stage of sleep characterized by rapid eye movements, increased respiratory rate, and a high level of brain activity; often associated with vivid dreams.